B-1 STATEMENT OF ADDITIONAL INFORMATION Dated May 1 ...

Independent Registered Public Accounting FirmPricewaterhouseCoopers LLP, 100 East Wisconsin Avenue, Suite 1800, Milwaukee, Wisconsin53202, is the independent registered public accounting firm for the Fund and performs auditing servicesfor the Fund.PORTFOLIO MANAGERSInformation regarding the Fund’s portfolio managers, including other accounts managed,compensation, ownership of Fund shares, and possible conflicts of interest, is set forth in Appendix D.LEGAL PROCEEDINGSTempleton, Janus and/or their affiliates, are subject to certain legal and regulatory proceedings.Information regarding certain of these proceedings is described in Appendix E. None of these mattersrelate to the Fund, any of the Portfolios, Mason Street Advisors, or Northwestern Mutual. In addition,each sub-adviser has stated that it is not currently subject to any legal or regulatory proceedings(including proceedings described in Appendix E), that would materially affect the sub-adviser's ability toperform services for the Fund or the Portfolios or otherwise materially affect the Fund or the Portfolios.PROXY VOTING POLICIES AND PROCEDURESThe Directors of the Fund have delegated to the Funds’ Adviser and the Sub-Advisers the authorityto vote all proxies relating to the Portfolios’ portfolio securities in accordance with the policies andprocedures adopted by the Adviser and the respective Sub-Advisers. These policies and procedures, orsummaries thereof, are set forth in Appendix F. Copies of the Fund’s proxy voting record for the mostrecent 12-month period ended June 30 may be obtained, without charge, by calling 1-888-455-2232, andon the SEC’s internet site at http://www.sec.gov.PORTFOLIO TRANSACTIONS AND BROKERAGE ALLOCATION AND OTHERPRACTICESFixed income securities are generally purchased from the issuer or a primary market maker acting asprincipal for the securities on a net basis, with no brokerage commission being paid by the Fund, althoughthe price usually includes undisclosed compensation. Transactions placed through dealers serving asprimary market makers reflect the spread between the bid and ask prices. Securities may also bepurchased from underwriters at prices which include underwriting fees. Transactions on U.S. stockexchanges and other agency transactions involve the payment by the Fund of negotiated brokeragecommissions. Such commissions vary among different brokers. Also, a particular broker may chargedifferent commissions according to such factors as the difficulty and size of the transaction. In the case ofsecurities traded on some foreign stock exchanges, brokerage commissions may be fixed and theinvestment adviser or sub-adviser may be unable to negotiate commission rates for these transactions.In executing transactions for the purchase or sale of portfolio securities on behalf of the Fund, theinvestment adviser, or sub-adviser in the case of the Portfolios for which sub-advisers have been retained,will attempt to obtain “best execution” for the Portfolio - the best combination of transaction executionservices, taking into account the services and products to be provided by the broker or dealer, and lowrelative commission rates with the view of maximizing value for the Funds and other advisory clients. Ineffecting purchases and sales of portfolio securities for the account of the Fund, the investment adviser orsub-adviser may pay higher commission rates than the lowest available when the investment adviser orsub-adviser believes it is reasonable to do so in light of the value of the brokerage and research servicesprovided by the broker effecting the transaction. The determination and evaluation of the reasonablenessof the brokerage commissions paid are based to a large degree on the professional opinions of the personswithin the trading department of the manager responsible for placement and review of the transactions.B-54